APICS APICS Certifications CSCP Questions & Answers

• Question 331:

  For an item with high profit impact and low supply risk, what would be a likely procurement strategy to support the overall supply strategy?

  A. Ensure supply, even at a premium cost.

  B. Vertically integrate the supply chain.

  C. Exploit purchasing power and minimize cost.

  D. Form a strategic sourcing group.

  Correct Answer: C

  Reference: https://www.mindtools.com/pages/article/newSTR_49.htm

• Question 332:

  A company distributes its products through wholesale, retail stores, and its e-commerce website. Inventory and demand forecasting for each channel is managed separately. The company is experiencing high levels of obsolete inventory. Which of the following strategies is most likely to reduce the levels of obsolescence?

  A. Place smaller orders with suppliers.

  B. Pool inventory and the forecast.

  C. Open more outlet stores.

  D. Negotiate lower costs with suppliers.

  Correct Answer: B

• Question 333:

  The design process by which a firm structures and manages the supply chain to achieve optimization is called:

  A. an information network.

  B. network planning.

  C. smoothing.

  D. logistical planning.

  Correct Answer: B

• Question 334:

  Quality function deployment (QFD) is a methodology designed to ensure that:

  A. quality is maintained at all levels of the organization.

  B. suppliers providing high-quality parts are certified.

  C. defective products do not reach customers.

  D. customer requirements are understood and met.

  Correct Answer: D

• Question 335:

  Which of the following objectives is a major principle of theory of constraints (TOC) accounting when applied to a supply chain?

  A. Total inventory reduction

  B. Maximize process utilization

  C. Maximize revenue generation

  D. Product design simplification

  Correct Answer: C

• Question 336:

  In order to bring a new product to market quickly while maximizing customer value and minimizing costs, a company should leverage:

  A. top performing suppliers in the areas of quality, cost, and availability.

  B. crowdsourcing for design capital requirements.

  C. e-commerce trading methods.

  D. concurrent engineering or participative design.

  Correct Answer: D

• Question 337:

  Which of the following actions by trading partners will likely reduce the goods that will be processed by the reverse supply chain?

  A. Contracting with a third party to process returned goods

  B. Designing products that are easy to disassemble

  C. Working to delay regulations that require accepting returns

  D. Providing support and service for proper product use

  Correct Answer: D

• Question 338:

  A company has designed its supply chain so that financial losses in one part of the supply chain will be offset by gains in another part. The company is employing which of the following strategies to address global risk?

  A. Speculation

  B. Flexibility

  C. Product shifting

  D. Hedging

  Correct Answer: D

  Hedge inventory is not a commonly used term in organizations, but many organizations do practice hedging when it comes to inventory. Hedging involves managing risk by building, buying, or contractually guaranteeing additional inventory at a set price if supply could be threatened or prices could rise. These decisions involve speculating on events such as the weather, the economy, labor strikes, civil strife, or political actions.

• Question 339:

  In a reverse supply chain, which of the following tools enables forecasting the usability of each part in the returned product?

  A. Reverse network design

  B. Warranty return rate analysis

  C. A disassembly bill of material (BOM)

  D. Design for service

  Correct Answer: C

• Question 340:

  The most cost-effective way to increase the velocity of goods in a supply chain is to:

  A. improve the way the supply chain handles goods that are not in motion.

  B. switch to a faster mode of transportation.

  C. establish warehouses near major retail outlets.

  D. subcontract with multiple third-party logistics (3PL) providers who are located at strategic locations.

  Correct Answer: A